1. The Field of the Invention
The present disclosure relates generally to gaming and, in particular, to a method and system for distributing funds associated with a game.
2. The Relevant Technology
It is common to distribute prizes amongst contestants participating in various games. Such games include games of skill and games of chance and include, for example, lotteries and raffles. Games may also include betting or gambling on the outcome of an event, including a sporting event. The prizes are often derived from entry fees paid by the contestants, and may be supplemented by funds contributed by sponsors. Such sponsors may include, for example, government agencies and commercial entities seeking to promote products.
In some games, the promoter of a game retains a portion of funds associated with a game in exchange for conducting the game. A first portion of an entry fee or gambled amount is retained by the respective promoter and a second portion of the entry fee is allocated to pay any necessary government taxes. The remaining portion of the entry fee is allocated to a prize pool, from which prize amounts are allocated amongst the gaming contestants. This model is utilized in many lotteries and other legalized gambling activities, such as betting on horse racing and the like. Depending on the particular application, the first portion of funds retained by the promoter may be sufficient only to cover administrative costs. Alternatively, the promoter may retain a greater portion of funds to generate a profit.
In some lotteries and gambling activities, the prize pool that is ultimately distributed among winning contestants is dependent upon the amount of money wagered on the game. For example, it is known to operate a lottery wherein a minimum grand prize is offered. If sufficient sums are wagered prior to the lottery being drawn, the lottery may increase the grand prize, and possibly other prizes, dependent upon the total funds wagered. Similarly, the prize pool to be distributed among people that have gambled on a horse race is typically dependent upon the total funds wagered on that particular race.
Charities are known to raise funds by raffling prizes or conducting lotteries. A person willing to assist the charity or desirous of winning a prize offered in a charity raffle buys one or more tickets in the raffle. Typically, the full ticket price is donated to the charity and the prizes offered by the charity are fixed. Depending on the jurisdiction in which the raffle is conducted, a ticket purchaser may be able to claim the price of the ticket as a deduction on an income taxation return. Once a predefined number of tickets in the raffle have been sold or a predefined date is reached, the raffle is drawn. One or more prizes are then allocated among the ticket holders, based on tickets that are drawn. The charity hopes to raise funds by selling tickets of greater value than the prizes being offered. Charity lottery participants generally enter charity raffles in order to support a given charity or charities. Nonetheless, most participants are motivated to enter a charity raffle by an opportunity to win a high value prize. Typically, the prizes being raffled are donated or purchased by the charity at greatly discounted prices. This enables the charity offering the prizes to raise more funds.
A need exists to provide an improved method and system for allocating funds associated with a game.